ReconAfrica has closed a C$19 million (about N$248 million) upsized public offering of units, including the full exercise of the over-allotment option, to fund upcoming exploration activities in Namibia’s Kavango Basin.
Proceeds will be used to drill the Kavango West 1X exploration well—ReconAfrica’s second test of the Damara Fold Belt play in northeastern Namibia.
Rig mobilization is scheduled for late June following the completion of drill site preparation and pending final permits.
The high-potential well targets 346 million barrels of gross unrisked prospective light and medium crude oil resources, or 1,839 billion cubic feet of natural gas, according to a December 2024 report. ReconAfrica holds a 90% working interest in the asset.
ReconAfrica has mapped 19 prospects and four leads across the Damara Fold Belt, which spans 11.5 million contiguous acres across Namibia and Angola. The Namibia portion alone is estimated to contain 2.6 billion barrels of unrisked prospective oil resources.
The offering, priced at C$0.50 per unit, comprises one common share and one warrant exercisable at C$0.60 until June 2027. The warrants are expected to begin trading on the TSX Venture Exchange around June 24, pending final approval.
BW Energy (OSE: BWE), along with ReconAfrica management, directors and other investors, participated in the raise for approximately C$4.7 million.